TEL AVIV, Nov 17 (Reuters) - Food maker Strauss Group is preparing a public offering of its coffeesubsidiary on the New York Stock Exchange in 2014, TheMarkerfinancial newspaper reported on Sunday.
The offering is in accordance with an agreement with privateequity firm TPG Capital, which has expressed interestin selling its 25 percent stake in Strauss Coffee.
In July, Strauss said it and TPG were examining options forthe sale of TPG's stake in Strauss Coffee after TPG held thestake for five years.
TPG paid $293 million for the stake in 2008.
"The company continues together with TPG Capital ... toexamine exit alternatives for TPG from Strauss Coffee. Nodecision has been made regarding exit options for TPG," Strausssaid in a statement on Sunday in response to the report.
According to TheMarker, Strauss has chosen Goldman Sachs andCiti to underwrite the offering. The offering could valueStrauss Coffee at $1.2-$1.8 billion, the report said.
Strauss, a maker of snacks, fresh foods and coffee, is amarket leader in roast and ground coffee in central and easternEurope as well as Brazil.
Its global coffee sales rose 0.9 percent to 992 millionshekels ($282 million) in the second quarter while operatingprofit in the segment jumped nearly 72 percent to 99 million.Much of the growth in profit was due to improvement at its TresCoracoes joint venture in Brazil.
Shares of Strauss were up 2.2 percent at 64.92 shekels inafternoon trade in Tel Aviv.
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